Mistrust of insurers not main reason for poor take-up
Lack of consumer trust is not to blame for poor protection sales, according to research conducted by Swiss Re.
In its latest Insurance Report, which focused on trends affecting the UK protection sector, the reinsurer stated that lack of trust is not, in fact, affecting protection sales as commonly thought.
The study, which questioned over 1,000 consumers, showed that less than 10% of respondents cited lack of trust as a reason not to buy protection. When asking non-buyers why they had not bought life cover, critical illness or income protection, only 7%, 8% and 5% respectively said it was because they did not trust the insurance industry.
Instead, a belief that they do not need the products, lack of affordability and awareness were listed as main reasons why people did not take out cover.
"We have become so used to accepting the premise that we suffer from a lack of trust that we have put off other initiatives until we have somehow restored consumer confidence," the report stated.
Peter Le Beau, managing director of Le Beau Visage, said: "Maybe the consumer media inflame a situation that is less serious than it is purported to be. Whatever the situation, we need to find why people trust us and build on that trust."
